Gen Xers Feel Unprepared for Retirement: What You Need to Know

As the first 401(k) generation approaches retirement age, it’s becoming increasingly clear that many members of Gen X are feeling unprepared for this next phase of their lives. Surveys consistently show that Gen X is the least confident when it comes to their retirement savings, with only around 60% feeling on track compared to 68% of baby boomers and 77% of Gen Z.

Research has shown that the typical Gen X household has only around $40,000 saved for retirement, far below the recommended amount of $446,565 by age 55. This lack of savings can be attributed to a variety of factors, including the shift from company-sponsored pensions to employees being responsible for saving for their own retirement.

Despite feeling unprepared, Gen X is actually the most likely to be saving consistently, with 80% reporting that they are doing so. Financial advisors recommend that those approaching retirement age take advantage of catch-up contributions in their retirement accounts, such as IRAs and 401(k)s, after turning 50.

Additionally, Gen X is poised to benefit from the Great Wealth Transfer, where trillions of dollars will be passed down from baby boomers to their heirs. This influx of wealth could help boost their confidence and financial security as they enter retirement.

While Gen X may be facing challenges when it comes to retirement savings, there are steps they can take to improve their financial outlook. By staying informed, taking advantage of available resources, and planning for the future, members of Gen X can work towards a more secure retirement.